Large Difference in Market Price of Medicine from Insurance Price

Jun 09, Kathmandu - Pantoprazole, which is taken for gastritis, is available in the market for eight rupees per tablet. Bharatpur Hospital sells the same medicine for 1.12 rupees, and the Health Insurance Board has set the selling price for the same medicine at 1.56 rupees. In general, how much profit is there between the time the medicine reaches the consumer and the manufacturer!

This price was obtained by adding 20 percent profit to the price purchased by Bharatpur Hospital through a tender. In this way, the difference between the price purchased by Bharatpur Hospital and the MRP (retail price) of the medicine is more than eight times.

Not only this medicine, but the health insurance has set the market price of Silodosin 8 MG, which is used by prostate patients at 35 rupees per tablet, at seven rupees.

The hospital sells Rosuvastatin 20 mg, used for cholesterol, at a retail price of Rs 38 for non-insured patients, while Health Insurance sells it at Rs 3.38 and Bharatpur Hospital sells the same medicine at Rs 1.72. The market price of liver medicine Uvilic 300 mg is Rs 40, while Health Insurance sells it at Rs 4.05 and Bharatpur Hospital sells it at Rs 11.26.

The market price of Rotacap for Seridil 250, used for asthma, is Rs 608 per bottle, while Health Insurance sells it at Rs 323.40 and Bharatpur Hospital sells it at Rs 377.90. The market price of Infagliptin 25 mg, used by diabetic patients, is Rs 30, while Health Insurance sells it at Rs 10.50 and Bharatpur Hospital sells it at Rs 16.95.

Another vitamin B12, methylcobalamin 1500 mg, is being sold at Rs 19.80, Health Insurance Board sells it at Rs 2.70 and Bharatpur Hospital sells it at Rs 10.53.

Dr. Bishwabandhu Wagle, Medical Superintendent of Bharatpur Hospital, says that it is difficult to sell some medicines at the insurance rate. He said that the price obtained by adding 20 percent profit to the price purchased through bidding or the price set by the insurance, which is cheaper, is used to sell medicines to insured patients.

Wagle said that since the price was fixed as soon as he came, it is difficult to sell medicines at a cheaper rate than the insurance rate set by the insurance.

Santosh Baral, General Secretary of the Nepal Pharmaceutical Manufacturers Association (APON), says that selling medicines cheaper than the market price will cause losses.

Drug manufacturers sell medicines to wholesalers and wholesalers to retailers. There are complaints that the market price of medicines with very low cost is very expensive because the manufacturing company works hard. However, the rules and market price of medicines are determined by government bodies.